Growth vs Appeasement – The Indian Political System
Posted in MBA Information | Email This PostEven though we have demonstrated adequately that we are incapable of a meaning full and a civilised debate on any of the issue be it be the parliament, the television studios or a public forum, we need to decide whether the size of the government needs to shrink. Despite the administrative reforms, the automatic clearances and the availability of the technology, an elephant size government, whose maintenance cost shoots up with the every pay commission report, has become a liability now. Politicians need a large government in order to accommodate the every possible loyalist. They have no incentive to shed the administrative fact. The United State republic party has also believed in having the minimum type of the government and consequently lower the levied taxes and this is the fact in which Mr Narendra Modi believed in at some point of the time. The Democratic Party though always follows the similar policies of the economy. Also takes the motherly type of the care of the working class and also of the immigrants. In the India, the political parties have not at all any type of the ideological commitments in order to have a small or the large form of the government. This stretched there government to the maximum permissible limits, after this the soviet melt down and the retreat of the socialism, after this the western model of the small government is generally preferred as it is having a large no of the advantages over having the larger form of the government, which in today’s scenario of the world is very less competitive. The Punjabi minister from the country of the Canada travelled to the Punjab in the India like the ordinary citizens, wondering at the spread of the ministerial paraphernalia, they are appalled by the level of the bad and in fact the worse type of the governance that has been dominating the nation of the India. In the India, we waste the resources on the in essentials as we expect the government of the India to do the every thing and also in turn take the blame that appears to be not working. As a democratic nation we are less watch full in the regard of how are tax money is spread. As the government always interferes in each and every of the fields because of many of the reasons, which can be to influence ant type of the decision to get the charm towards own or any of the known individual, including the agriculture and the business, it is very natural for the farmers and the various types of the business men to demand for the incentives and also the loan waivers as a matter of the right if the things are seen to be going in the wrong direction. And all these demands especially the waiver of the loans is a very serious affect as it really affects the economy and the banks if the step is practically brought on the table as the same has been done by the central government in the state of the Uttar Pradesh just in order to please the farmers and getting the votes and then to make there government but as a result of this the economy of the nation as a whole is hit on a big way.
The protectionist policies have robbed the people of the self respect, the entrepreneurial spirit and the will of the individual to take a risk and start some thing new and also take the responsibilities for the reactions received for the actions that have been made. We disown the failures that are received by the citizens and then in turn we all expect the government to rescue and provide with the solutions, financially as well as morally, if in any of the case our decisions go wrong in the future. The politicians pander to the every whim of the every type of the section that has a role to play in the time of the elections and as a result of this, inviting more and more of the unreasonable demands and also prompting to the others to raise voice as the other did in the past times. We and the whole nation fully deserve the politicians we have. A democratic government has a major responsibility towards the citizens who are in the distress and hence providing the social safety net is always a laudable goal of a welfare state. In a country in which there is no type of the security on the social plat form, worth the name, the concept of the well fare has been extended to absurd the levels. That politician’s soul purpose of being in the politics is to just gain and then in turn retain the power is very obvious. So when they seek votes they are in to making all sorts of the promises and it generally includes all those things that are according to the wave that is going on and is red hot at that point of the time and what the citizens are wanting to hear at that point of the time, Some times to keep there faith they deliver also but this is a very rare scene. If the limited types of the sources that are available are diverted just in order to appease this or that section of the society, depicts that the governance is not going in the right direction and hence as a result of this, the quality of the governance is affected a lot as a whole. This also affects the various types of the facilities that are imparted by the government, which includes the very critical of the lot like the delivery of the services of the health and the education, the functioning of the institutions and also over all the well being of the people as has come in front of the people of the Punjab. A treasury that has been made bankrupt by the inappropriate type of the governance leaves a very harm full affect on the people and the whole world and the image and the economy is completely destroyed as a heavy unproductive debt is pilled up as a result of this and imposes a cost on the generations that are to follow and it becomes very much difficult and also very time consuming for the coming and the following directions to rise up to the situation.
There was a time when the state of the Tamil Nadu has seen a very successful and a productive time under the leader ship of the very famous Ms Jayalalithaa as she was very much able to bring the well fare politics to the advantage of her and also of her ruling party as a whole and this was the major initiative that was able to stop the state of the Tamil Nadu from going in to the state of the bankruptcy like the state of the Punjab, was the over all expansion of the economy and the efficient delivery of the services. Though the state of the Tamil Nadu has been dubbed as the no 1 state to be in the India that is the most corrupt, but the chief minister always made it sure that the freebies did reach the needy in any of the case. If the power can win badal’s an election in the state of the Punjab, they would not at all mind to make the system bankrupt and then too take loan on loan just to keep the promises made. These in turn send a very harm full message to the society and encourage the other various political opponents to do the same. The major factor that has made the state of the Punjab suffer and ruined the state of the Punjab is the competitive populism. Inheriting a completely empty treasury, the new chief minister of the state of the Punjab Mr Amarinder Singh has no idea of from where he should make the start in order to full fill the various offers that he had made before the elections to win. Remember what an American journalist P J O’Rourke has said, a politician who portraits him self as caring and also sensitive as he wants to enhance the various charitable programs of the government, is merely saying that he is willing to try some thing good for the people with the other people’s money. The latest convert to those using the public money in order to buy the good will of the people is Mr Narendra Modi. If he and his party, the BJP, can win the elections in the state of the Uttar Pradesh by offering free gas cylinders apart from playing the card of the politics of the communalism, he would also do the same in every state that is due for the elections. Then he has justification to deny the gas subsidy to the middle class and then raise the tax on the petrol and the diesel.
So it can be said that if the culture of the freebies has to be maintained and then sustained, that is helping the politicians more than marginalised, sacrifices are required from the better of sections. After this there can not be any type of the complaints about the state taxes or even the debts going up. We need to settle this debate whether the pro poor politics is doing the nation any type of the good. Are we blindly funding the schemes that do nothing good but only benefit the corrupt and by politicians, the public good will or do we want our government to get off our backs and do the minimum amount that is or will be possible? If we approve of a government running hotels, air lines and the banks that keep making the losses from the time to time, mainly because of the political interference and the corruption and also because of the lack of the professional work culture of also extending financial bail outs to this or the that failed business, then we should happily pay for all the taxes and levies demanded of all of us. There is growing discontent among the various sections of the society because the large amount of the resources are diverted from the development work, the infra structure and the health care. The children dying for the lack of the oxygen in one of the hospitals of the Uttar Pradesh clearly shows the condition of the health care in the nation of the India and hence clearly reveals the state of the government health care in the country. The Maratha march in the state of the Maharashtra, the Jat reservation agitation in the state of the Haryana, the patidars hitting the streets in the state of the Gujarat and the recent peasant unrest in the state of the Punjab and else where. All point to the economic aspirations that have not been full filled. This is mainly because of the money that had to be used for the improvement in the agriculture sector but has been used for the funding of the politics of the populism.
There are the two ways of over coming the deprivation; one is to spend more on the education sector and the health care sector, so that the every Indian is empowered to participate in the effort for the higher growth and the better living standards. The other part is to focus on the growth first and then let the benefits trickle down to the people, present at the bottom of the pyramid. The second model has not been successful as has not shown very encouraging results. The politics of the appeasement makes worse of the every model of the growth and is now carried on both at the centre level as well as at the states level. We had some world class economists at the helm but were rendered help less in the pursuit of the power. The UPA had a good team in the form of the Dr Man Mohan Singh, P Chidambaram, Dr Montek Singh Ahluwalia and Mr Raghu Ram Rajan. But excessive focus on the inclusive growth and political priority of winning the elections by any means, did not give them a free hand to carry out the various types of the reforms they wanted to carry out. If a government seizes to be saviour of all and also the provider of the every thing and hence in turn limit it self to the various essentials, just a lean mean and the efficient machinery to do the chosen things, then we can perhaps in any of the case, breathe easier and then be spared a whole lot of the financial burden that is mainly choking us now.
Now is the opportunity that must be grabbed by the India as in the present scenario, the movement of the innovation is at the pause at the Silicon Valley. The fabled vale stretches from the southern periphery of the San Francisco, past the airport to the San Jose. The heart of the technology revolution innovation revolution lies at the Palo Alto and the campus of the Stanford University. In fact the world famous technology names on the buildings can be seen all around the over 8000 acre campus established at the city by the Californian politician and the railway tycoon Leland Stanford in the year of the 1885. the fable is that the president of the Harvard rebuffed his offer of a huge grant in the name of the son Leyland junior, who died of the typhoid at the age of the 15, leading to the Stanford being born. The host and the guide of the author is the former sanawarian Satjiv S Chahil, whose parents once up on a time used to stay in the beautiful city of the Chandigarh. He in the starting began with the Xerox in the 1980s on the business development side at the Palo Alto research centre. It was this lab that spawned elements of the personal computing like the desk top graphical use inter face and the mouse etc. thus while the Palo Alto lab pioneered most of the technologies that are today the basic to a paper less world, the Xerox corporate head quarters on the east coast saw little commercial use for them. Their loss was the gain of the apple and the Microsoft who weaned away the frustrated Xerox employees looking for the chasing of the dreams. The rest is all history. The Silicon Valley today is seen teaming with the start ups, the conventions at which the innovators and the venture capital hawkers can interact with and the constant churning to look in to the future. Mr Satjiv him self moved to the apple in the year of the 1988, following many others seeking a more innovative environment. One middle level entrepreneur summed it up saying that after the last burst of the innovation that gave uber etc, every one is waiting for the next disruptive innovation as in the past couple of the years nothing new has emerged. Silicon Valley’s placid environs, amidst the rolling hills and the salubrious weather, appear the detached from the anxieties of the global geo politics today. In a fort night, while on the golfing vacation, the president Mr Donald Trump has issued a nuclear treat to the democratic people’s republic of the North Korea with the help of the colour full phrase fire and the fury threatened the Venezuela with the military intervention and then flirted with the white supremacists and the neo Nazis. The problems of the India appear so distant from here on the other side of the globe. The doklam stand off persists with the occasional growls from the china hinting at the military retaliation. The ghastly death toll of the children in a Gorakhpur hospital climbed over the 60 as the union government remains mum and the government of the state in the Lucknow keeps shifting the blame to the lower level functionaries despite the hospital being in the city chief minister Mr Yogi ADITYA Nath has represented for the decades in the lok sabha. The difference between the India and the United States is that the lambasting of the Donald trump over his vague condemnation of the white supremacists in the Charlottesville violence, which made him to do a reluctant about the turn, is in complete contrast to the Narendra Modi getting away with the similar dis-stimulation or the silence over the gau rakshaks or the lynching in the broad day light of the minority or the scheduled caste persons or now the children’s deaths.
In the United States, more and more analysts are beginning to wonder whether their president lacks the stability which the leader of the free world possessing a deadly nuclear arsenal by the definition must have the trump’s DPRK bashing is how ever very much help full to the nation of the India as it is keeping the china massively distracted due to the two factors. On is that the republic of the china would like the DPRK to be a pliable and not wreck fewer buffers with the republic of the Korea as indeed a use full foil to the country of the Japan. The second one is that it does not want a war with the possibility of the use of the nuclear devices by either or both the sides, particularly when it is heading in to its crucial 19th party congress later this year. Logically, the republic of the china would not want to exacerbate the relations with that of the India at this point of the time having its hands full on its eastern frontier. It is possible even the new UN sanctions against the DPRK which are likely to further squeeze its $ 3 billion worth of the exports, may only condition the good behaviour temporarily, if at all. On the other hand if the republic of the china is able to extricate trump honourably from this mess, he is unlikely to press the republic of the china on the trade and the geo political issues that do not directly impinge on the interests of the United States. The doklam stand off out come would always depend on the fact that how the United States DPRK issue pans out. This year is the centennial of the Russian revolution which by its ideology and the soviet military rise dominated the 20th century geo politics; it is also a decade since the financial crisis which compelled the questions to be asked about the viability of the western liberal economic order. The second event also emboldened the republic of the china to assertively reclaim its imagined position as a global power, equal or even superior in the future to the United States. Trump by his unwise clamping down on the movement of the human resources to the United States on the populist and the fallacious ground of the protecting of the jobs in the United States, is actually the crippling the innovation of the United States resting on the attraction of the young talent from across the globe. The success of the Silicon Valley and the rise of the innovative new companies as the Xeroxes of the United States floundered due to the static visions is a lesson that the United States strengthens from the open doors and the welcome mats. Charlottesville symbolises the major type of the fight back by the regressive forces seeking to march to the past. While the United States is thus preoccupied, the world is not waiting at all. A Chinese billionaire is weaving away the talent from the various car makers of the Germany and the Silicon Valley electric car researchers to create in the Los Angeles a rival to the Tesla, the pioneer in the field. This is the Chinese way in order to capture the technology. It is required that the nation of the India should also work on going in the same direction and hence India too needs to become very much pro active in the nature and then move further towards the establishment of the free zone, ideally on an island chain, with the minimum regulatory control and the lax taxation to wean away the talent from the silicon valley worried about the narrowing space of the United States in this sector of the world. A condition precedent would have to be the Prime Minister Mr Narendra Modi showing that he is able to lift the whole nation with him. Waving the national flags and singing the anthems reduce the nationalism just in order to symbolic the various types of the gestures. In order to achieve the national prosperity and the global power, the nation of the India needs a nurturing, a non intrusive state and the centres of the innovation built around the citadels of the learning. India now needs many Leyland Stanford’s and also the Steve jobs. So in the other words it can be said that now id the perfect time that India had expected to face in order to check the various policies and the various types of the strategies on which it has been working on as necessary changes are mean to be brought in for growing in pace with the other countries of the world and not being left behind.
A survey conducted by the reserve bank of India on the confidence of the consumer conducted in the June 2017 in the six cities of the India, namely the Bengaluru, the Chennai, the Hyderabad, the Kolkata, the Mumbai and the New Delhi. The survey revealed that the people are as disappointed with their growth of the in come, the employment and the economic well being as they are before the Narendra Modi government came to the power. When the era of the Modi government began, the markets of the stock shot up as the investors and the industrialists pinned very high hopes on the new regime, given the Modi’s pro business image. The stock market are again close to an all time high but as the surveys indicates, the people in the big cities do not seem to share the market’s optimism. The perceptions about the economic change in the three years of the Modi Raj are far from the positive. The slogan of the Achhe Din has become a kind of a joke. The government has done some good things such as maintaining a low fiscal deficit, controlling the inflation, cutting down the petroleum subsidies, passing the key legislation to eliminate the delays in the bankruptcy procedures and to regulate the real estate and of course the goods and the services act. But the expected benefits are yet to percolate down. Rather in the short run spurts in the prices of the tomatoes and the onions have added to the public disenchantment. The traders have got tangled in the G S T’s operational complexities. Too much high rates of the tax and the multiple return filings. Still, the manufacturing has not got any thing other than the slogan of Make in India. The Reserve Bank of India’s industrial survey points out that the percentage of the manufacturers who think that the employment is increasing in the June 2017 is lower than what it was in the month of the March 2014. If such is the level of the disappointment in the metro cities where the delivery of the services, the income opportunities and the living standards are relatively much better than the other areas of the country, the mood of the public in the country side is not difficult to imagine. The protests of the farmer and the subsidies give an indication. The small hikes in the minimum support prices may have helped in the controlling of the inflation of the food, but this has been achieved at the farmer’s expense. If the job less growth weighs down youth in the cities, the rural youth do not have even skills for the earning a living. Still the government strategies know how to keep the hope alive and then divert the attention of the public from the core issues.